How is the Learningrx Area Development Fee calculated?

According to Learningrx's 2025 Franchise Disclosure Document, the Area Development Fee is calculated based on a percentage of the Initial Franchise Fee and Initial Training and Materials Fee, as well as the number of additional centers the franchisee is authorized to develop. Specifically, the Area Development Fee is equal to 35% of the value of Learningrx's then-current Initial Franchise Fee and Initial Training and Materials Fee, multiplied by the number of additional centers, after the initial center, granted pursuant to the Area Development Agreement. This fee grants the franchisee the right to open and operate additional centers, provided they comply with their development obligations under the Area Developer Agreement.

If a Learningrx franchisee chooses to open more than two centers, the Area Development Fee will increase by a set amount for each additional center after the initial one. The increase is $10,500 for each additional Micro Center or $15,750 for each additional Standard Center. This incremental increase applies for each center that Learningrx grants the franchisee the right to open and operate under the Area Developer Agreement.

In practical terms, this means that a Learningrx franchisee planning to develop multiple centers will need to factor in these Area Development Fees in addition to the standard franchise fees and other initial investment costs. The Area Development Fee is paid upon execution of the Area Developer Agreement. Understanding this fee structure is crucial for prospective area developers to accurately project their initial investment and assess the financial feasibility of expanding the Learningrx brand in their designated area.